2 Copywrite - Creative Business Solutions Inc.What are incentives?“Incentive programs aren’t automatic performance generators. . . they can even backfire and be counterproductive when they don’t work out in the fashion intended” (Ron Zemke & Dick Schaaf - The Service Edge)Incentives are rewards with some strings attached, commonly known as the carrot and stick approachincentive: n. 1. A motivating influence, stimulus, 2. a. an additional payment made to employees as a means of increasing production b. (as modifier): an incentive scheme. adj. 3. serving to incite to actionCopywrite - Creative Business Solutions Inc.

3 Copywrite - Creative Business Solutions Inc.RecognitionThe motivational power in recognition lies mainly in its ability to appeal to an employee’s sense of pride. . . typical safety examples include:“Pat on the back”“Praise for a job well done”“Coffee with the boss of CEO”Or any other initiative which may be deemed to be worthy or motivationalCopywrite - Creative Business Solutions Inc.

4 Key recognition factorsDifferent people like to be recognized differentlyDon’t assume you know what will “turn peoples crank”. What may be a hot button for you may not be for someone elseOne persons plaque or trophy proudly displayed in the rec. room may be another persons basement junkCopywrite - Creative Business Solutions Inc.

5 How to recognize? The possibilities are endlessSmall giftsPlaquesMemosPublic speeches“Pep” talkYou can create as many opportunities, artificial or otherwise, which you feel may be a “motivating” exerciseCopywrite - Creative Business Solutions Inc.

6 Incentives. . . Ripe with Controversy“The tacit assumption behind safety contests is that workers are primarily responsible for accidents through their carelessness, accident proneness or bad attitudes, and that they can therefore stop accidents from happening merely by resolving to be more careful, to obey their supervisors or to have a positive attitude towards safety. . . “(Dr. Robert Sass: The Value of Safety Contests, 1984)Copywrite - Creative Business Solutions Inc.

7 Westray 1992 John T. Ryan Trophy winnerBased on “injury” statistics only (frequency or recordable injuries)Frequency not a good indicator of “risk”Tells you nothing about risk managementToo easy to “cook the books”Only about “records”Copywrite - Creative Business Solutions Inc.

9 Alfie Kohn “Punished by Rewards”“Clearly, punishments are harsher and more overt. . . but rewards simply control through seduction rather than by force. In the final analysis, they are not one bit less controlling since, like punishments, they are typically used to induce or pressure people to do things they would not freely do - or rather, things that the controller believes they would not freely do”Copywrite - Creative Business Solutions Inc.

10 Copywrite - Creative Business Solutions Inc.Kohn. . . continued“People’s interest in doing what they are doing typically declines when they are rewarded for doing it. . . scores of other studies confirmed this conclusion”“Consider the countries typically cited as competitors of the United States. Japan and Germany. . . rarely use incentives and other behaviorist tactics to induce people to do a better job”Copywrite - Creative Business Solutions Inc.

11 Peter R. Scoltes “The Team Handbook”“The greatest management conceit is that we can motivate people. We can’t. Motivation is there, inside people. . . the greatest managerial cynicism is that workers are withholding a certain amount of effort that must be bribed from them by means of various incentives, rewards, contests or merit pay programs. . . the greatest waste of managerial time is spent trying to manipulate people’s minds and infuse motivation into them”Copywrite - Creative Business Solutions Inc.

12 Douglas McGregor “The Human Side of the Enterprise”“Individual incentive plans provide a good example of an attempt to control behavior The practical logic of incentives is that people want money, and that they will work harder to get it”Incentive plans do not take account of several other well-demonstrated characteristics of behavior in the business setting. . .Copywrite - Creative Business Solutions Inc.

14 Copywrite - Creative Business Solutions Inc.1974 Ham Royal Commission“The Commission believes that emphasis on unsafe conditions and unsafe acts falsely dichotomizes and generally oversimplifies the organic circumstances out of which accidents arise”“The apparently common view that the great majority of accidents are the direct result of nothing more than unsafe acts or unsafe conditions is, in the Commission’s opinion, too restricted a view of the human problem of accidental injuries”Copywrite - Creative Business Solutions Inc.

15 Section 11(c) Federal US OSHA ActEmployees can’t be discriminated against for exercising any right under the act. Since employees have the right to report that they have been hurt on the job, and games which discourage the exercise of that right may be considered discriminatoryCopywrite - Creative Business Solutions Inc.

16 E. Scott Geller “The Psychology of Safety”Safety incentive programs should focus on the “process” rather than the “outcomes”Reward people for what they do - risk reducing behaviors or correct, safe behaviorsCopywrite - Creative Business Solutions Inc.

17 F. David Pierce “Total Quality for Safety & Health Professionals”Historically we have used safety awards as carrots for worker safety. Most times these focus on workers staying injury free, not on worker safety participation. It’s for these reasons that these injury-free based award programs have mixed resultsParticipation based awards are different. When used, they can change the perceptions destructive to safety award programs. That is, they bring a halt to the reward systems that depend on not having injuries and instead focus on involvementCopywrite - Creative Business Solutions Inc.

18 Copywrite - Creative Business Solutions Inc.Cohen & Smith NIOH&SCohn & Smith’s study indicated that among industry leaders in accident free hours, use of monetary incentives was played down, and management frequently expressed the opinion that safety contests, give-away prizes and once per year dinners simply did not workCopywrite - Creative Business Solutions Inc.

19 Clash of Ideas Incentives Generate Heated DebateAlfie Kohn: “Rewards are not actually solutions at all. They are gimmicks, shortcuts, quick fixes that mask problems and ignore reason. Giving people rewards is an inherently objectionable way of reaching our goals by virtue of its status as a means of controlling others. What rewards and punishments do is induce compliance”.Alfie Kohn/W.Edwards Deming/Stephen R. Covey: Common safety tools such as incentives, recognition, praise and penalties do more harm than good in the long run because employees see these tactics are a means of controlling behavior. Feeling controlled, an employee’s own inner motivation suffersCopywrite - Creative Business Solutions Inc.

20 Copywrite - Creative Business Solutions Inc.Advice from Behaviorists E. Scott Geller. . . “The Psychology of Safety”“The intent must not be to control people, but to help them control their own behavior for the safety of themselves and others. This is why the terms such as behavior modification, discipline and enforcement are inappropriate. They carry the connotation of outside control. The bottom line is that behavior is motivated by consequences that are obvious and immediate”Copywrite - Creative Business Solutions Inc.

21 Behavior-Based Safety vs Hierarchy of Control of Hazards1. The belief that worker behavior is the precursor to safety or injury2. Implementation must be achieved through training (lots!)3. High participation is critical for success4. Management commitment to the process is essential5. Behavior is objective and can be observed6. Unsafe or at-risk behavior can be objectively measured7. Improving safe behavior and minimizing at-risk behaviors reduces injuriesCopywrite - Creative Business Solutions Inc.

22 Behavior-Based Approaches to Safety Incentive and Recognition Options1. Behaviors required to achieve a safety award should be specified and perceived as achievable by participants2. Everyone who meets the behavioral criteria should be rewarded3. It’s better for many participants to receive small awards than for one person to receive a big award4. Rewards should be displayed and represent safety achievement (ie: mugs, hats, shirts, sweaters or jackets with a safety message)5. Contests should not reward one group at the expense of another6. Groups should not be penalized or lose their rewards for failure by an individual7. Progress toward achieving a safety award should be systematically monitored and publicly posted for all participantsCopywrite - Creative Business Solutions Inc.

27 Safety Incentive, Recognition and Award SystemsDeciding if the approach is right for you&Which type of “system” meets your needsCopywrite - Creative Business Solutions Inc.

28 Safety Incentives and RecognitionDo you presently use them in your business?If so why? If not why not?Reference the definitions:Incentives:Rewards:Recognition:Are they used in any other aspect of your business? If so, how?Copywrite - Creative Business Solutions Inc.

29 Safety Incentives and Recognition Are they right for your business?Conduct perception survey - what do people think?Consult individual workers & management - what do they really think?Develop task teams to brainstorm issueEvaluate existing corporate culture of your businessLook at existing safety policies and practices. . . do they compliment a “culture of recognition for outstanding achievement”?Are injury rates still the main measure of your safety performance?Are there other opportunities to recognize outstanding safety performance?Copywrite - Creative Business Solutions Inc.

30 Copywrite - Creative Business Solutions Inc.The Steps for the development of a safety incentive /recognition system1. Establish the rationale, logic and foundation for the system and its use in your businessWill your system be based on injury free periods only?Will the system include select safety & accident prevention activities? (is so, what are they?)Will the system be available to both management and workersWill the system be structured so as to avoid under-reporting or injuries?Will the system be based on select safety targets, goals and objectivesCan workers and management set their own safety objectives?Copywrite - Creative Business Solutions Inc.

31 2. Identify Resources at your DisposalWill there be a budget for identified rewards or financial remuneration?Verbal recognition only?Will the rewards be tied to other forms of compensation, ie: executive compensation; merit increases; profit sharing; workers’ compensation rebates?Are other types of rewards, other than financial, being considered?Will resources be available to individuals, teams, to assist in achieving these reward/recognition targets?Will the system be “management”, “individual” or “team” driven?Copywrite - Creative Business Solutions Inc.

32 3. Who is going to “drive” the process? LEADERSHIPWho do you need to get “on side” to help market your system? (management-union-workers)How will this leadership role be identified?Someone with credibility in your business needs to play a critical roleThis leader will need to sell others on the positive benefits of an achievement-based safety cultureThis leader will have to stand firm to the principles and beliefs of an achievement-based safety culture when naysayers look to find fault with the processCopywrite - Creative Business Solutions Inc.

33 4. Test Marketing. . . taking the pulse of your peopleWayne G. Pardy-Executive Consultant4. Test Marketing. . . taking the pulse of your peopleIs the process working? (how do you know?)Is there a direct cause and effect relationship between your incentive and the safety performance you want/desire?Is risk being reduced?Do people believe in the process?Does the system need “fine tuning”?Is the process going stale- if so, what are you doing about it?Does the system help foster trust, honest communication, effective safety performance and total safety management objectives? If so - good! If not, why not?Notes:Copywrite - Creative Business Solutions Inc.Pardy & Associates